Fidelity Bank has announced a significant increase in its proposed dividend payout to shareholders for the 2023 financial year. The bank’s directors have recommended a final dividend of 60 kobo per share, marking a 20% rise from the previous year’s dividend of 50 kobo per share. This announcement was made as part of the bank’s audited annual reports and financial statements for 2023, which were filed with the Nigerian Exchange Limited on Monday.
In accordance with Section 379 of the Companies and Allied Matters Act (CAMA) 2020, the board of directors has proposed the final dividend payout. The total dividend for the year, including the interim dividend of 25 kobo per share paid on September 22, 2023, amounts to N0.85k per Ordinary Share. This dividend will be disbursed from the retained earnings account as of December 31, 2023.
The audited results reveal a robust financial performance for Fidelity Bank in 2023. Profit before income tax surged by 131.49% to N124.26 billion from N53.68 billion in 2022, while profit after tax also saw a substantial increase to N99.45 billion from N46.72 billion. The bank attributes its success to its strong growth trajectory, the need for additional capital to fuel profitability and expansion both domestically and internationally, and the enhancement of its digital capabilities.
During the financial year, Fidelity Bank acquired a wholly owned subsidiary, Fidelity Bank UK Limited (formerly Union Bank UK Plc), for a value of $50 million. The completion of this acquisition resulted in a charge of $1.8 million, representing the gap between the completion net asset value and the planned net asset value on the purchase consideration, as per the Sales Purchase Agreement between the seller and Fidelity Bank Plc Nigeria.
Additionally, the bank announced the retirement of Mr. Hassan Imam, the former Executive Director of North, from the board with effect from January 10, 2024. Mr. Imam’s retirement follows his appointment as the managing director of Keystone Bank.
Fidelity Bank’s decision to increase its dividend payout reflects its commitment to delivering value to shareholders amidst its impressive financial performance and strategic growth initiatives.
